Regal Partners (RPL) H1 2025 earnings summary

Executive summary

• Normalised NPAT for 1H25 was $44.8 million, with statutory NPAT at $26.3 million and fully diluted EPS of 10.5 cents per share; a fully franked interim dividend of 6 cents per share was declared, reflecting strong cash generation and capital position.

• Funds under management (FUM) reached $17.7 billion at 30 June 2025, increasing to $18.5 billion by 31 July 2025, driven by strong net inflows and investment performance.

• Net inflows for 1H25 were $0.7 billion, with 12-month net inflows at a record $1.9 billion, up 120% year-over-year.

• Continued diversification across hedge funds, credit and royalties, real and natural assets, and growth equity, with a focus on building a resilient, scalable platform.

• Significant growth in institutional and offshore clients, with $1.1 billion in net inflows from offshore in the past three years and $300 million in new offshore inflows in the last two months.

Financial highlights

• Total revenue for 1H25 was $148 million, including $42 million in performance fees across multiple strategies.

• Management and loan management fees rose to $100.1 million, with an average fee margin of 1.15%.

• Performance fees were $42.4 million, mainly from PM Capital's global strategy, Attunga Power, Taurus Mining Finance, and Regal Funds Management.

• Total expenses were $74.4 million, with employee benefits at $43.9 million and other expenses at $21 million.

• Fully diluted EPS of 10.5 cents, up 17% sequentially from 2H24.

Outlook and guidance

• Strong start to 2H25 with over $300 million in net inflows and $500 million added from investment performance, bringing FUM to $18.5 billion by July.

• Performance fee-eligible funds at or near high watermark now stand at a record $10.8 billion, positioning for further performance fee upside.

• Offshore distribution remains a strategic priority, with a new Head of Distribution appointed for North America.

• Continued focus on organic and disciplined inorganic growth, with M&A opportunities in real estate, infrastructure, private equity, and credit.

• Management remains confident in continued growth, citing positive industry tailwinds and a focus on delivering strong performance and sustainable long-term value.